Real Estate Investors Run Lean in First Quarter of 2023

Investors were wary as mortgage rates rose in the first quarter of 2023, with buyers purchasing 48.6 percent fewer homes compared to the previous year, according to a report by Redfin.

Read the Redfin report here.

In addition, investors bought 14 percent fewer properties in the month of February as interest rates along with declining demand had a strong impact on the market.

The report indicates it was the biggest annual drop on record, according to the online real estate tracker.

Roughly one of every seven (13.5 percent) U.S. homes sold by an investor in March sold for less than the investor bought it for. That’s comparable with February’s 14.5 percent rate—the highest since 2016. It’s also nearly triple the share of a year earlier and compares with a record low of 2.8 percent in May.

Read the Redfin report here.